How It Works

Terms
To help us manage promissory note expiry terms efficiently, all notes expire at the closest following semi-annual dates: June 30 or December 31. For example, a 2-year closed-term note dated February 20, 2024 would expire on June 30, 2026.

Upon expiry, there are three options for note holders:

1. Balances outstanding on the note are paid;
2. The note’s outstanding balance is applied to another closed-term note with interest payable at the published and prevailing interest rates at that time; or,
3. The note’s outstanding balance is applied to an open-term note, payable on demand with at least a 30-day notice, with interest payable at the published and prevailing interest rate for open-term notes at that time.

Interest Payments
A lender has the option of receiving their earned interest (direct deposit) on a semi-annual or annual basis, or the lender can choose to receive a donation receipt in lieu of interest payments.

Disclaimer
Impact Loans support and grow Redwood’s capacity to build safe, affordable, hopeful housing where people thrive in supportive community. Lenders should be aware that Impact Loans are promissory notes and not secured by specific Redwood property or assets.